By: Hendri Saparini, Ph.D
Managing Director
ECONIT Advisory Group saparini@econit.co.id
IDEAs Workshop
New Delhi, 5-6 November 2009
•
Economic characteristics and its development of
ASEAN members, China and India.
•
ASEAN China Free Trade Area (ACFTA) and
ASEAN India Trade in Goods Agreement (TIG):
The Basic Agreement and Current Development
•
Trade and Investment between Indonesia – China and Indonesia – India, and their impacts on
Indonesian economy.
•
ASEAN is very aggressive to enter into a Free Trade
Agreement (FTA). In fact, the country members of
ASEAN have not all been ready to commit in such FTA.
•
A review on ASEAN-China and ASEAN-India FTAs is very crucial as ASEAN will have to deal with two economic giants, not to mention that they are highly competitive.
•
A review on Indonesia, as one of ASEAN members that has huge economic potentials, is expected to give significant result in form of relationship development pattern, as well as the potential benefit and negative impact from the economic integration on process.
AGREEMENT SIGNING DATE EFFECTIVE
ASEAN-Australia-New Zealand
Free Trade Area (AANZFTA)
27 February 2009 Preparations are currently being undertaken for the ratification and the subsequent implementation of the Agreement by the parties
ASEAN-China Free Trade Area
(ACFTA)
ASEAN-India Trade in Goods
(TIG) Agreement
ASEAN-Japan Comprehensive
Economic Partnership (AJCEP)
November 2002 The realization of ACFTA in 2010 for Brunei Darussalam, Indonesia,
Malaysia, Philippines, Singapore, Thailand and China, and 2015 for
Cambodia, Lao PDR, Myanmar and Viet Nam.
13 August 2009 The ASEAN-India FTA will see tariff liberalisation of over 90% of products traded between the two dynamic regions. Tariffs on over 4,000 product lines will be eliminated by 2016, at the earliest. The ASEAN-India TIG
Agreement will enter into force on 1 January 2010 once India and at least one ASEAN Member State notify completion of their internal ratification process.
April 2008 The Agreement entered into force on 1 December 2008. As of July 2009,
Brunei Darussalam, Lao PDR, Malaysia, Myanmar, Singapore, Thailand, Viet
Nam and Japan have ratified the Agreement.
ASEAN-ROK Framework
Agreement on Comprehensive
Economic Cooperation
13 Dec. 2005 The Framework Agreement provides for an ASEAN-ROK Free Trade Area by the year 2008 (with flexibility to 2010) for ROK, 2010 (with flexibility to
2012) for Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore and Thailand, 2016 for Viet Nam and 2018 for Cambodia, Lao PDR, and
Myanmar.
ASEAN Needs to Define A Better Strategy
•
China is an economic giants to ASEAN
•
GDP and Foreign Reserve of China are far above those of ASEAN members
•
Trade structure between China and ASEAN members show that Chinese products are highly competitive
•
Almost all ASEAN members face trade deficit against China
•
Chinese attractiveness for foreign investment is above that of ASEAN members in average.
ASEAN Behind China and India
-10
-15
20
15
10
5
0
-5
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
China
India
Indonesia
ASEAN-5
Source: IMF
ASEAN’s GDP only 34% of the Chinese (2008)
China
India
Indonesia
Thailand
Malaysia
Singapore
Philippines
Viet Nam
Myanmar
Brunei Darussalam
Cambodia
Lao PDR
89.8
27.2
14.6
11.2
5.3
511.8
273.2
222.2
181.9
168.6
0
1,209.7
4,401.6
500 1000 1500 2000 2500 3000 3500 4000 4500
Billions of USD
Source: 2008 figure, IMF
ASEAN members, China and India
120
100
80
39.8
60
40
12.9
20.8
20
20.1
0
-20
Brunai
8.0
44.4
19.1
30.9
23.1
39.7
2.8
28.8
1.1
27.8
8.4
41.1
6.2
15.2
9.7
19.1
12.5
11.6
11.9
10.7
13.5
71.1
67.3
60.9
54.7
54.8
45.2
41.0
36.1
-1.8
-5.3
-16.5
China Singapore Malaysia India Thailand Indonesia Vietnam Philipina
Private consumption Government consumption Gross domestic capital formation Net Export
Source: ADB
Impact of Economic Reform
120
100
China
80
60
40
ASEAN
20 Indonesia
-
India
(20)
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
Source: UNCTAD
China is far Above ASEAN
China
ASEAN
Singapore
Thailand
Malaysia
India
Vietnam
Indonesia
Philippines
Brunei Darussalam
Cambodia
Myanmar
17.4
8.4
3.7
3.3
Lao People's Dem. Rep.
1.0
47.8
75.3
33.5
29.2
20.3
0 100
190.0
200 300
Billion USD
400
396.4
500
677.2
600 700
Source: UNCTAD
Huge Surplus of China’s International Trade
China
ASEAN
India
Singapore
Malaysia
Thailand
Indonesia
Viet Nam
Philippines
Brunei Darussalam
Myanmar
Cambodia
Lao PDR
137.0
61.8
49.0
8.8
6.6
4.4
0.8
187.4
241.4
194.5
175.0
0 200 400
879.3
1428.5
Exports
Imports
600 800 1000 1200 1400 1600
Billions of USD
Source: Asean Economic Community Chartbook, 2008
Top 5 ASEAN Exports to China:
Dominated by Electonics Parts and Primary Commodities
Others, 58%
Electronic integrated circuits and microassemblies, 18%
Palm oil & its fractions, not chemically modified,
5%
Automatic data processing machines; optical reader, etc, 7%
Natural rubber, balata, gutta-percha etc, 6%
Petrolium oils, not crude, 6%
Source: Asean Economic Community Chartbook, 2008
ASEAN Commodities Export to China:
Main Source for China’s Demand , 2008
Marble,travertine, ecaussines etc
Niobium, tantalum, vanadium ores & concentrates
Zinc ores & concentrates
Ores & concentrates, nes compounded rubber, unvulcanised, in primary forms
Iron oxides & hydroxides
Zirconium & articles thereof, including waste & scrap
Chromium ores & concentrates
Alumunium ores & concentrates
Iron ores & concentrates; including roasted iron pyrites
Slag. Dross other than granulated slag
Uranium or thorium ores & concentrates
76.6
76.7
76.9
77.3
82.9
84.1
86
89.9
91.8
94.8
97
99.9
75 80 85 90 95 100
Percent
Source: ASEAN Economic Commonity Chartbook 2009
ASEAN from China, 2008
Others, 76%
Hot rolled, flatrolled products of iron or nonalloy steel, 2%
Electronic integrated circuits and microassamblies,
5%
Automatic data processing machines; optical reader, etc, 5%
Electric app for line telephony, including current line system, 6%
Parts & acces od computers & office machines, 6%
Source: ASEAN Economic Commodity Chartbook, 2009
Main ASEAN Countries’ Exports to India:
India Dependent for Raw Materials (2008)
Country
Brunei Darussalam
Cambodia
Myanmar
Indonesia
Malaysia
Singapore
Viet Nam
Philippines
Thailand
Commodity
Crude petroleum oils
Palm oil & its fraction
Dried vegetables, shelled
Palm oil & its fraction
Crude petroleum oils
Petroleum oils, not crude
Coal; briquettes, ovoid & similar solid fuels manufactured from coal
Parts & access of motor vehicles
Petroleum oils, not crude
Share of total export (%)
99.80%
88.80%
61.70%
57.40%
39.70%
22.20%
21.68%
18.90%
6.40%
Source: ASEAN Secretariat Office
Why being dominated by Petroleum Oils?
Soybean oilcake & other solid
Refined copper and copper alloys, unwrought, 3% residue, 4%
Diamonds, not mounted or set,
5%
Petrolium oils, not crude , 31%
Electric app for line telephony, including current line system , 3%
Others, 54%
Source: ASEAN Economic Community Chartbook 2009
Continuous increase of deficit
120
100
80
Import
60
40
20
Export
0
-20
-0.9 -1.7 -4.3 -2.0 -2.7 -4.0 -2.9 -3.7 -1.5 -6.4
Balance of trade
-8.9 -9.9
-15.2
-21.4
-40
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: ASEAN Statistical Yearbook, 2008
ASEAN - India Trade:
Surplus with Value Added?
35
30
25
20
15
10
5
0
Balance of trade
Export
Import
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: ASEAN Statistical Yearbook, 2008
ACFTA:
Gates to Liberalization
•
ACFTA was agreed in November 2002. Both sides have targeted the realization of ACFTA in 2010 for Brunei
Darussalam, Indonesia, Malaysia, Philippines,
Singapore, Thailand and China, and 2015 for Cambodia,
Lao PDR, Myanmar and Viet Nam.
•
Under the ACFTA, tariffs on certain products as known as the Early Harvest Program (EHP), were reduced before the onset of the FTA (came into effect on 1
January 2004).
•
Others agreements by sectors have also been agreed under ACFTA.
•
The ASEAN-China MOU on Strengthening Sanitary and
Phytosanitary (SPS) Cooperation was signed in November
2007.
•
ASEAN-China MOU on Agricultural Cooperation in November
2002 in Phnom Penh; a more direct cooperation in the agricultural sector between the lead national agencies in
ASEAN and China. An extended ASEAN-China MOU on
Agricultural Cooperation for 2007-2011 was signed in January
2007 in Cebu.
•
ASEAN and China strategic partnership in Information and
Communications Technology (ICT) to promote international cooperation in terms of investment in human resources development on ICT and to explore the possibility of establishing Greater Mekong Sub-region (GMS) information highway.
•
ASEAN and China cooperation: the MOU on Transport
Cooperation in November 2004 in Vientiane, promoting: i) transport infrastructure construction; ii) transport facilitation; iii) maritime safety and security; iv) air transport; v) human resources development; and vi) information exchange.
•
The 7 th ASEAN-China Maritime Transport Agreement
(ACMTA), November 2008 agreed in principle with the
Strategic Plan for ASEAN-China Transport Cooperation, identifying transport infrastructure projects aimed at enhancing international and cross-border transportation and facilitation.
HS
04
05
06
07
08
01
02
03
Description
Live Animal
Meat and edible meat offal
Fish, crustacean, molusc, other invrt.
Dairy products
Products Animal Origin, nes.
Live tree and other plant
Edible vegetables and certain roots
Edible fruits and nuts
Source: ASEANSEC
X= Applied MFN
Tariff Rate
X > 20%
15% < X < 20%
10% < X < 15%
5% < X < 10%
X < 5%
2005*
20
15
10
5
ACFTA Preferential Tariff Rate
(Not later than 1 January 05)
Standstill
2007
12
8
8
5
2009
5
5
5
0
0
Agreement on Trade in Goods of the Framework Agreement on Comprehensive
Economic Co-operation ACFTA starting on January 1, 2005
2010
0
0
0
0
0
Industry Vietnam India China Thailand Malaysia Indonesia
Agriculture and hunting
Chemicals and chemical products
Coke, petroleum products and nuclear fuel
Electrical and electronic equipment
Food, beverages and tobacco
Forestry and Fishing (PRODUCTS)
Machinery and equipment
Metal and metal products
Mining and quarrying
Mixed goods (trade data)
20.1%
4.4%
5.8%
14.0%
36.5%
20.5%
7.5%
9.9%
4.2%
5.1%
*Simple average across all partners countries
28.2% 15.9%
7.9% 11.2%
8.2% 7.1%
6.0% 14.6%
34.1% 21.5%
24.8% 12.3%
7.5% 11.5%
7.2%
4.9%
9.1%
9.3%
4.6%
9.1%
21.0%
3.4%
3.0%
7.9%
23.1%
10.8%
6.2%
6.8%
1.2%
5.9%
5.0%
2.1%
0.1%
4.4%
15.2%
1.1%
4.8%
12.2%
0.7%
0.6%
4.8%
4.3%
3.2%
5.0%
10.2%
4.7%
2.7%
7.0%
3.7%
6.1%
Source: ITC
Industry Vietnam
Motor vehicles and other transport equipment
Non-metallic mineral products
Other manufacturing
Petroleum
Precision instruments
Publishing, printing and reproduction of recorded media
Recycling
Rubber and plastic products
Textiles, clothing and leather
Wood and wood products
Average
25.4%
25.4%
28.4%
5.4%
11.5%
22.0%
0.5%
19.4%
41.6%
18.1%
16.3%
*Simple average across all partners countries
India China Thailand Malaysia Indonesia
18.3% 14.6% 18.8%
9.2%
9.6%
6.1%
7.9%
15.9% 7.3%
20.4% 15.6%
2.3% 0.3%
11.9% 5.1%
7.4% 7.2% 8.7%
5.8%
9.6%
2.9% 0.1%
14.2% 10.4%
28.3% 19.2% 13.3%
9.4% 8.7% 6.2%
12.5% 11.7% 8.8%
10.1%
15.9%
7.8%
2.0%
0.7%
8.5%
0.5%
20.5%
11.5%
11.4%
6.8%
4.4%
1.6%
11.6%
10.5%
4.8%
6.1%
10.2%
7.5%
10.5%
3.7%
4.6%
Source: ITC
China Financial Aids and Investment:
Aggressiveness due to Huge Foreign Reserve
•
Investment cooperation fund totaling US$10 billion
(infrastructure construction, energy and resources, information and communications)
•
Credit of US$15 billion (including loans with preferential terms of 1.7 billion dollars in aid for cooperation projects)
•
Special aid of 39.7 million dollars to Cambodia, Laos and
Myanmar
•
Provide 300,000 tons of rice for to strengthen food security
•
Donate 900,000 dollars to the cooperation fund of ASEAN plus
China, Japan and the Republic of Korea
•
Inject 5 million dollars into the China-ASEAN Cooperation Fund
•
Offer of 2,000 government scholarships and 200 Master's scholarships for public administration students
Relationship of ASEAN-China and ASEAN-India
•
ASEAN economic is relatively much smaller than China in terms of
GDP, which is around 2.9 times of ASEAN’s. It is difficult for
ASEAN to compete with China in FTA. Chinese population is 2.3 times ASEAN’s and a very huge market for ASEAN products, but even before FTA ASEAN products can hardly penetrate Chinese market due to lack of competitiveness.
•
ASEAN members (excl. Singapore) have similar characteristics, rich of natural resources, but low industrial productivity and competitiveness. This means that they compete each other, rather than complementing. Considering this characteristics, it needs a very hard work to develop AFTA for they are competing in same existing market and not creating a new opportunity.
Relationship of ASEAN-China and ASEAN-India
•
ASEAN has already signed a free trade agreement and will be followed by other agreements. ASEAN should develop a joined-marketing strategy to increase their bargaining, for example for CPO, Indonesia and Malaysia are the biggest producers, so they have a very strong position in determining price.
•
When ASEAN is able to become a unified economy, then ASEAN will be able to offer an economic cooperation for mutual benefit of ASEAN,
China and India. In investment, for instance, it is encouraged to China and India to establish processing industry in ASEAN, so China and India will not only absorb raw materials from ASEAN, but also give higher value added ASEAN.
•
Should ASEAN not transform into an economic power, ASEAN would not get more benefit from FTA. Trade and investment after FTA will indeed encourage economic growth, but such growth will not give much value added into the economy. Although exist, value added will only be limited and unable to raise social welfare.
Indonesian Economic Relationship with China and India
Different Economic Characteristics
•
Chinese GDP showed that investment has the biggest share in GDP, while in China and Indonesia the second of the biggest share in GDP.
•
China and India focus on exporting manufactured products, not natural resources materials.
•
More competitive industrial sectors has made trade liberalization have more positive impact to China and India, otherwise to Indonesia.
•
Export of manufactured products, due to more competitiveness and productivity, has an important role in increasing Chinese and Indian foreign reserves.
GDP Structure:
Indonesia, China and India
120
100
80
60
40
20
0
-20
China India Indonesia
Statistical discrepancy
Net Export
Gross domestic capital formation
Government consumption
Private consumption
Source: ADB
Manufacture Productivity and Competitiveness
Increasing Foreign Reserve of China
2,500
2,000
1,500
1,000
500
-
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
500-
Source: State Administration of Foreign Exchange Bureau of PRC
Increasing India Foreign Reserve
150
100
50
0
300
250
200
Source: Reserve Bank of India
Indonesia Foreign Reserved:
Unstable, Not a Result of Productivity and Competitiveness
60
50
40
30
20
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Bank of Indonesia
Focusing on Manufacturing Goods
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
19
80
19
89
Primary Goods
19
91
19
93
19
95
Manufactured Goods
19
97
19
99
20
01
20
03
20
05
20
07
Source: Ministry of Commerce PRC
Dominated by Manufactured Goods
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Manufactured goods
Primary products
Primary Product
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Reserve Bank of India
Increasing Shares of Primary Commodity
100%
90%
80%
70%
60%
Non Primary Commodity
50%
40%
30%
20%
10%
0%
2002 2003 2004
Primary Commodity
2005 2006 2007
Source: CBS
2008
Trade Balance
Surplus for Oil & Gas, Deficit for Non Oil & gas
-6
-8
0
-2
-4
4
2
6
0.50
0.82
1.71
1.12
2004
(3.61)
2005 2006 2007 2008
Balance of trade Oil and gas Non-oil and gas
Source: Ministry of Trade
Surplus for Non-Oil & Gas, Mainly Raw Materials
5
2
1
4
3
0
-1
1.07
2004
4.26
3.33
1.83
1.98
2005 2006 2007 2008
Balance of trade Oil and gas Non-oil and gas
Source: Ministry of Trade
Dominated by Natural Resources (2008)
Petroleum gases
Palm oil & its fraction
Crude petroleum oils
Natural rubber,balata,gutta-percha etc
Chemical wood pulp,
Coal
Coconut (copra)
Nickel ores and concentrates
Copper wire
Aluminum ores and concentrates
-
2,469.0
859.1
742.3
716.4
1,188.8
1,519.3
337.0
230.9
210.2
203.6
500.0
1,000.0
1,500.0
2,000.0 2,500.0
3,000.0
Million USD
Source: CBS
Dominated by Natural Resources, too (2008)
Coconut (copra),
2%
Binders for foundry molds or cores, 2%
Copper ores and concentrates, 4%
Others, 14%
Petroleum coke,
1%
Chemical wood pulp, 1%
Natural rubber, 1%
Palm oil & its fraction, 58%
Coal, 17%
Source: CBS
Mostly Manufactured Products, but Agricultural, too
Portable Digital Automatic Data Processing Machines
Structures And Parts Of Structures Nesoi, Of Iron Or Steel
Parts And Accessories For Automatic Data Processing Machines
Auxiliary Plant For Use With Steam Or Other Vapor Generating Boilers
Garlic, Fresh Or Chilled
Aluminum Nonalloyed Rectangular
Superphosphates Fertilizers
Disodium Carbonate
Parts And Accessories Of Motorcycles
Petroleum Oils And Oils From Bituminous Minerals, Crude
Parts For Auxiliary Plant For Use With Steam
Steam And Other Vapour Turbines
Flat-Rolled Products Of Iron Or Non-Alloy Steel
Parts For Machinery Making Or Finishing Paper Or Paperboard
Antennas And Antenna Reflectors
Mandarins (Including Tangerines And Satsumas), Fresh Or Dried
Apples, Fresh
Tobacco
50.00
306
125
138
121
155
151
147
145
181
194
87
85
83
81
99
93
92
90
100.00
150.00
200.00
Millions of dollar
250.00
300.00
350.00
Source: CBS
Dominated by Manufactured Goods (2008)
Semi-finished products of iron
4%
Cotton, not carded or combed
5%
Television camera, transmissn app
8%
Soya-bean oil
9%
Cyclic hydrocarbons
10%
Petroleum oils, not crude
13%
Ground-nuts, not roasted
3%
Trucks, motor vehicles for the transport of goods
3%
Others
45%
Source: CBS
Insignificant in Indonesia
Japan
9.2%
Other Asia Countries
3.3%
Europe
7.3%
USA
1.0%
China
0.9%
Australia
0.3%
India
0.1%
ASEAN
12.5%
Mauritius
43.6%
Joint Countries
21.8%
Source: Indonesia Investment Coordinating Board
Trade and Investment
•
Indonesian trade balance against China and India: surplus for oil and gas, but deficit for non-oil & gas
•
Indonesian top 10 export to China and India are natural resources commodities. It is almost 80% for Indonesian export to India and 70% to China
•
Import Indonesia from China and India: mostly manufactured products and final goods. Furthermore, on EHP implementation since 2004, Indonesia has imported a huge amount of agricultural products from China.
•
Chinese and Indian FDI in Indonesia was relatively insignificant.
•
Currently, there is a trend of acceleration of Chinese investment in Indonesia in infrastructure and oil & gas, while
India in financial sector.
It Will Increase, Soon
Contract Year
2004
2005
2007
2007
2008
2009
2009
2009
Sector
Bridge
Oil (SOE)
Railways (SOE)
Other infrastructure
Dam
Other infrastructure
Oil
Power Plant (west Java)
Power Plant (east Java)
Amount
US$ 150 million
US$ 1.5 billion
US$ 200 million
US$ 600 million
US$ 239.7 million
US$ 200 million
US$ 642 million
US$ 481.9 million
US$ 293,2 million
Power Plant (central Java) US$ 605,2 million
Power Plant (south Sumatra) US$ 330 million
Mining
Biodiesel
Emergency
Steel
Power Plant
Power Plant (SOE)
US$ 14.4 million
US$ 255 million
US$ 500.000
US$ 500 million
60% of total 10000 megawatt
US$ 615 million
China Loan to Indonesia
Increased During 2008 Crisis
•
Indonesia government has received standby loan of USD 5.5 billion and Bilateral Currency Swap
Agreement (BCSA) up to US$ 17.5 billion.
•
The BCSA scheme will strengthen rupiah value and maintain financial stability, as well as encouraging trade and investment. China trade with Indonesia will be pushed on natural resources and raw materials. Indonesian trade will be continuously dominated by Chinese manufactured products. As China has agreed to provide Special
Buyer Credit Facility (SBCF) for Indonesia.
Need Improvement for Mutual Benefit
China will focus their investment and trade on natural resources and raw materials, as well as infrastructure. On the other hand,
Indonesian will be continuously importing
Chinese manufactured products.
This trend will make Indonesia become natural resources and raw materials exporter, as a consequence, employment opportunity growth will be stagnant, even slowing down.
Low Competitiveness of Indonesian Products
0%
-2%
-4%
-6%
8%
6%
4%
2%
3.4%
2001
3.2%
6.2%
4.1%
1.3% 1.2%
-3.7%
2002 2003 2004 2005 2006 2007
Growth of Textile and Leather Product
-3.6%
2008
Source: CBS
Vietnam, 2%
Congo, 4%
Others, 5%
Brazil, 4%
Bolivia, 5%
China, 45%
Peru, 13%
Indonesia, 22%
Source: CBS
…..But, Increasing Imports of Tin Based Products
Radiotelephony, radiotelegraphy, radiobroadcasting or television
10.61
Flat-rolled iron or nonalloy steel products, > 600 mm wide, plated or coated with tin,
< 0.5 mm thick
Flat-rolled iron or nonalloy steel products, >600 mm , plated or coated with tin, > 0.5
mm thick
1.79
20.35
42.2
Flat-rolled iron or nonalloy steel products, <600 mm wide, plated or coated with tin
0.31
0.54
0 50
73.48
100
169.85
150 200
Source: CBS
2003
2007
How to Increase Benefit from FTA
• Prior to FTA, China investment in Indonesia is only in natural resources sectors. Soft loans to Indonesia are mostly aimed at infrastructure development and natural resources. Considering the privatization trend in Indonesia, China will have bigger opportunity to own shares of strategic Indonesian SOE, like electricity, power plant, railway, steel, etc.
• Chinese investment pattern is most likely to be focused on natural resources exploitation and assembling plant for components/parts imported from China, so most of the value added goes to China. If this condition continues to occur,
Indonesian and other ASEAN members’ natural resources will be drained. ASEAN members will fail to create competitive and productive industrial countries.
• Evaluating agreements related with FTA and postponement of
FTA implementation.
• Immediately prepared industrial policy map road in order to increase national productivity and competitiveness